This article was originally written for publication in Rural magazine
As a financial planner, one phrase I still hear surprisingly often is:
"My husband deals with that."
Recent research suggests this experience is far from uncommon. While 84% of women say they are actively involved in managing daily finances and are more likely to lead household budgeting and spending, far fewer take the lead when it comes to longer-term financial matters. Research from St James Place show that just 34% of women say they are responsible for investment decisions, while only 32% are in charge of retirement planning.
While every relationship is different, I would encourage women to get involved in discussions about pensions, investments, savings and future planning so that they are informed and have a voice in decisions about the future.
I often ask clients a simple question:
"If something happened to your partner tomorrow, would you know where everything is and how it works?"
Surprisingly often, the answer is no.
The problem is not a lack of ability. It is often a lack of confidence, time or opportunity. In fact, research found that only 54% of women would feel confident managing a significant inheritance on their own, and just 44% would feel confident investing that money, despite women being expected to inherit more than half of all wealth transferred globally by 2048.
That confidence gap is one of the reasons why financial advice can be so valuable. A good financial planner is not there to take control of your finances or make decisions for you. Their role is to help you understand your options and give you the confidence to make informed decisions.
Are women better investors?
One of the biggest misconceptions about women and money is that women are naturally risk averse. In my experience, that's simply not true. Women just tend to think differently and are more likely to consider the bigger picture.
Interestingly, the evidence suggests that women may actually make better investors. Research carried out with Barclays investors found that women outperformed men by 1.8% per year on average over three years. One reason is that women are often less likely to make impulsive decisions or react emotionally to short-term market movements. Instead, they tend to focus on long-term objectives and stick to their plan.
The problem is that financial discussions often focus on the risks of investing, rather than the risks of not investing. As a result, some women avoid making decisions altogether, believing they are taking the safer option. Yet over time, inflation and missed investment growth can quietly do far more damage to long-term wealth than short-term market fluctuations.
The risk nobody talks about
Many people think holding cash is the safe option, however, inflation quietly reduces the spending power of that money over time.
I have met many women who left their pensions sitting in cash believing they were avoiding risk, but what they were actually doing was missing out on years of potential growth. While their pension value may not have visibly fallen, they lost something much harder to replace – time.
The cost of that missed opportunity can be significant. Money that could have been working towards a more comfortable retirement was effectively standing still while the cost of living, and the amount needed to retire comfortably, continued to rise.
When life gets complicated
Financial planning is rarely as straightforward as having a salary and a savings account. I have worked with many women whose wealth was spread across pensions, investments, property, business interests or family assets and I have seen pensions held in one spouse's name, investments structured around the higher earner, or significant wealth tied up in a business that both partners helped to build.
These arrangements are rarely deliberate attempts to create inequality. They simply evolve over time.
The challenge is that complexity can sometimes create distance from financial decision-making.
That is why understanding how your finances are structured is so important. Knowing where assets are held, how they are owned and how they fit into your wider financial plan can provide clarity and a greater sense of control over your future.
Why financial independence matters
Understanding the finances that affect your future can help you feel more informed, more confident and better prepared for whatever life may bring.
Not every contribution is reflected on a payslip, share certificate or company structure, but that does not make it any less important. If your efforts help build the family's future, you deserve to help shape the financial plan that supports it. A good financial planner can help bring those conversations to life, providing clarity, structure and reassurance while helping you build a plan that reflects your own goals and aspirations.
Because nobody has a greater interest in your financial future than you do.
